Brokers expect significant consolidation as the industry prepares for FSA regulation. That's according to a study by Mazars accountants.
They found that 86% of respondents expect there to be a substantial decrease in the number of broking companies over the next 12 to 18 months. This could mean up to 1,800 brokers disappear.
The survey found that many small brokers are not confident in their own evaluation systems and, as a result, they expect there to be a drop in the number of brokers over the next 18 months.
Nearly half of respondents expect the shift in regulatory bodies to have a detrimental effect on their business with 53% said they were not satisfied with their compliance initiatives.
Mazars senior partner Robin Oakes said: "Many brokers are deciding whether to survive, consolidate or retire.
"There is a fear factor of regulation but we were encouraged to see brokers considering the key issues."
